News

Tech Takes the Table

12/20/2024

These operators are leveraging automation with much success

When Hogsalt Hospitality opened Aster Hall in Chicago’s luxury 900 Shops in 2018, there was plenty of hubbub surrounding this state-of-the-art destination’s technology. Situated on two levels in the 22,000-square-foot space were 16 stalls representing the restaurant group’s most notable brands, including Small Cheval, Sawada Coffee, Doughnut Vault and Green Street Smoked Meats.

The service at Aster Hall is brisk and efficient, due to a prolific high-tech dining experience for guests. To order, they may choose from cashless kiosks on the premises, as well as mobile QR ordering or DoorDash. Customers may mix and match brands (i.e. burgers and fries from Small Cheval, drinks from Sawada Coffee, dessert from Doughnut Vault) to get a taste of various popular dishes under one roof. Within minutes, they may pick up their orders at the stalls.

Aster Hall’s tech-savvy process helps take pressure off labor staff. And its more than six-year run thus far has proven successful in appealing to consumers of all generations.

While Aster Hall pushes high tech as one of its main attractions, other operators may look to leverage technology in ways that fit an existing brand. For example, Yum! Brands, a leading quick-service company boasting the likes of KFC, Taco Bell and Pizza Hut in its portfolio, has experienced a significant increase in digital sales by evolving its technological features.

“Back in 2019, we were averaging about 19% in digital sales," Joe Park, president of Digital and Restaurant Technology Ecosystem and Chief Digital and Technology Officer at Yum! Brands, said in a recent Forbes interview.¹"Fast forward to today, we're over 50%… We're essentially running more of an e-commerce business than not.” The company's technological innovations include third-party food aggregators, e-commerce platforms, kitchen management systems, in-restaurant hardware (i.e. tablets, kiosks), customized POS systems and more.

According to Datassential, many consumers are in favor of modern technology at restaurants.² For instance:

53% of consumers love using mobile apps
51% say that automation makes it easier to customize their orders
45% either like or love automation when getting food from restaurants
28% would eat out more often if automation was more part of the experience

“While drones and robot servers may sound exciting, most consumers just want to speed up their transaction time in our increasingly time-pressed culture,” an excerpt from Datassential, Restaurant Technology Keynote, November 2024, explained. “The most desired technologies that consumers want from restaurants are a website that is mobile-optimized (which most restaurants have); a dedicated mobile app for ordering, payment and more; the ability to order via third party delivery apps; the ability to make reservations digitally; and in-store kiosks or tabletop tablets for ordering and payment."²

While most operators agree with these consumer insights, some still feel that technology may negatively affect organic interactions with customers.

“Operator concerns around staff and automation include not being as in control of the patron experience (staff building rapport with customers, training staff on how to represent the brand, employees giving personalized menu recommendations), as well as lower tips and hurting employee morale,” the Datassential study reported. “Further, nearly one-third of operators say that automation goes against their brand/image, showing the importance of service to the total value to patrons that many operators—particularly full-service restaurants—provide."²

Nevertheless, according to Datassential:²

84% of operators either currently accept or are interested in accepting contactless cards (i.e. Apple pay)
65% of operators use at least some form of automation
35% of operators say that automation will be essential to their future success
37% of operators say that automation is great for bringing in new guests
51% of consumers say that automation makes it easier to customize their orders
23% of sales/orders in the past year were placed online, according to restaurant operators

Strike a balance with technology that makes sense for the brand

The bottom line for operators is that one size does not fit all when it comes to technology. Some restaurants may go for a Rosie the Robot-style aesthetic, such as Phoenix’s Thai Recipe Bistro. The family-focused restaurant uses them to deliver orders directly to dine-in customers, serving as a kitschy, Instagram-worthy experience. Meanwhile, restaurants at Soho House private clubs worldwide utilize technology on an app that allows diners to pay there instead of chasing down a server. In both cases, technology takes the pressure off labor staff.

What should operators do when considering restaurant technology at their establishments? They should think about their patrons’ preferences, labor implications and brand fit when considering automation. Here are more examples of successful integration of technology.

Faster service

Cashless kiosks. McDonald’s, one of the pioneers of cashless kiosks, reported last fall that 40% of its business happened via app, delivery or the kiosks.³ Many predicted that the new technology would eliminate jobs, yet McDonald’s said that “the move won’t cost anyone their job; workers will be redeployed to other tasks,” according to News Nation Now. Another bonus is that customers can order from the kiosks when they’re ready, taking the pressure off those who may need more time. With less pressure, according to the company, app and kiosk users are more likely to “upsell” themselves by adding more items to their order. McDonald’s introduced kiosks that accept cash in September 2024.³

Easing labor issues

Automated food preparation. According to a report by the National Restaurant Association, 98% of restaurants experienced significant operational cost increases in 2024 due to inflation.⁴ Some restaurants are using robotics to ease kitchen labor by deploying them to prep burgers and pizzas, bake pastries, fry chicken wings and more. The Picnic Pizza Station, for example, may be used by a single employee to prepare up to 100 pizzas in an hour.⁵ Users may customize machines to add precise, consistent amounts of cheese, sauce and toppings to each pizza, thereby decreasing waste.

Tech supporting a brand

AI driven analytics. In 2020, Starbucks introduced a proprietary AI program called Deep Brew, which services its 31,000 global stores.⁶ It helps personalize customer experiences, operate stores effectively and manage inventory.

“Every store has its own personality. Every store has its own set of customers and its own set of characteristics, and AI can help us understand those individual store characteristics better,” Kevin Johnson, CEO of Starbucks at the time, said in a Starbucks blog post. “If you try to run one algorithm for all stores, you’ll make progress. That’s kind of what we’re doing now. But to really break through, you have to get down to the individual store level and make sure we’re making it as easy as possible for each store manager to create the culture and the kind of human connection we aspire for where they are, because when we are able to do that – wow, we are at our best.”⁶

Creating unique, memorable experiences to develop loyal followers

Experiential platforms for customers. Tock launched in 2014 as an all-in-one solution for reservations as well as table and event management. It quickly became popular for its functionality of holding diners responsible for their reservations as they were required to pay for tables in advance. It soon evolved into a viable platform for restaurant and cocktail bar events, from New Year’s Eve parties to one-of-a-kind chef experiences. Tock helped support many restaurants, particularly during the Covid-19 pandemic.

It eventually caught the eye of Squarespace, which bought it, then sold it to American Express in 2024. Its new owner plans for more expansion in the future.

“This acquisition will enhance our dining platform by making more restaurants and dining experiences available through American Express, providing restaurants and other hospitality businesses with more tools, and over time, connecting them to our network of premium diners,” said Pablo Rivero, vice president, American Express Global Dining, CEO Resy, in a statement.⁷

From AI-powered analytics to robotic food prep, the possibilities for tech-driven dining are endless. Nevertheless, the key to success lies in thoughtful implementation and a focus on the human element.

¹ How YUM! Brands Serves Up Digital Innovation, Forbes, Nov. 25, 2024
² Datassential, Restaurant Technology Keynote, November 2024
³ McDonald's Experimenting with Kiosks that Take Cash, News Nation Now, Sept. 11, 2024
⁴ 2024 State of the Restaurant Industry, National Restaurant Association
⁵ 14 Restaurant Robots Changing the Food Industry, Built In, April 2023
⁶ AI for Humanity: How Starbucks Plans to Use Technology to Nuture the Human Spirit, Starbucks, Jan. 10, 2020
⁷ American Express Completes Acquisition of Tock, American Express, Oct. 15, 2024